What are the different types of accounting methods?

There are three main types of accounting methods: cash basis, Accrual Basis, and modified Accrual Basis. Each method has its own set of rules for recognizing revenue and expenses.

What is the Accounting Procedure of a company?

The Accounting Procedure of a company is how it records and reports its financial transactions.

What is the cash basis Accounting Procedure?

The cash basis Accounting Procedure is the simplest form of accounting. It records revenue when cash is received and expenses paid out.

What is the Accrual Basis Accounting Procedure?

The Accrual Basis Accounting Procedure is more complex than the cash basis Accounting Procedure. It records revenue when it is earned and expenses incurred, even if cash has not been exchanged.

What are the types of Accounting Procedures?

Accounting methods fall into two categories: cash accounting and accrual accounting. Cash accounting records revenues and expenses when they are received and paid; accrual accounting records revenues and expenses when they occur.

Accounting Procedures MCQ Quiz With Answers

1. Double entry implies:

Recording entries in the journal
Recording entries in the ledger account
Recording two aspects of every transaction
Recording every transaction in the books

2. Which of the following accounts can be classified as a real account?

Rent expense account
Rent income account
Insurance expense account
Cash account

3. Keeping a log of financial information in the books of original entries is called:

Recording
Summarizing
Grouping
Processing

4. Bookkeeping is mainly concerned with which part of the accounting process?

Analyzing
Preparing financial statements
Recording financial information
Auditing the books of accounts

5. Are assets debited or credited when they increase?

Debited
Credited
Both debited and credited
Assets are never recorded in the books of accounts

6. When we talk about accounting, what kind of job do we mean?

Bookkeeping and auditing
Bookkeeping only
Bookkeeping and consulting
Bookkeeping, auditing, consulting, and more

7. Usually, what asset account in a company's ledger is the most liquid?

Check
Cash
Book
Account

8. NAM caters for Modified Cash Accounting, Commitment Accounting, and what else?

Asset accounting
Revised chart of accounts
Double-entry bookkeeping
All of the above

9. What are the major objectives of bookkeeping?

Keeping the basic record of business transactions
Providing this record to the business management
Both of the above
None of the above

10. What is bookkeeping?

The process of keeping a basic record of business transactions
The process of providing a record of business transactions to management
The process of recording data relating to accounting transactions in the accounting books
None of the above

11. The books of original entry are sometimes referred to as:

Books of primary entry
Books of safe entry
Both of the above
None of the above

12. What is double-entry bookkeeping?

The process of keeping a basic record of business transactions
The process of providing a record of business transactions to management
The process of recording data relating to accounting transactions in the accounting books
A system in which each transaction is entered twice: once on the debit side and once on the credit side